Freshii Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Freshii is a fast-casual franchise serving healthy salads, wraps, bowls, smoothies, and juices. Franchisees run the restaurants, managing fresh prep, staffing, and counter service in urban and retail locations.
FranchiseVerdict summary · 2026
A Freshii franchise requires a total initial investment of $173K – $641K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 32.4% charge-off rate across 43 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $173K – $641K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 52
- 66th pct Service Resta…
- SBA charge-off
- 32.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $173K – $641K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited financials for Freshii Development, LLC, expressed in thousands of USD. FY2022 (52 weeks ended Dec 25, 2022): total revenue $1,646K = royalty revenue $1,259K + franchise fees $387K. FY2021 total revenue $2,292K. KPMG LLP audited FY2022; PricewaterhouseCoopers LLP audited FY2021 and FY2020 (restated).
- RISKVerdict F (Weakest tier), verdict score 15/100 (higher is better). SBA loan charge-off rate of 32.4% across 43 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG8 units terminated last reporting year (15.4% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Freshii Development, LLC
- Parent company
- Freshii Inc.
- Ultimate parent
- Foodtastic, Inc.
- Incorporated in
- DE
- HQ
- 27 North Wacker Drive, Suite 426, Chicago, Illinois 60606
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $1.6M
- vs $2.3M prior year
Overview
About
- CEO
- Peter Mammas
- Headquarters
- IL
- Founded
- 2008
- FDD year
- 2023
- States available
- 20
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $133K | $551K |
| Total initial investment | $173K | $641K |
Source: Freshii 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $173K – $641K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $60K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Freshii did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Freshii unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
25%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
Audited financials for Freshii Development, LLC, expressed in thousands of USD. FY2022 (52 weeks ended Dec 25, 2022): total revenue $1,646K = royalty revenue $1,259K + franchise fees $387K. FY2021 total revenue $2,292K. KPMG LLP audited FY2022; PricewaterhouseCoopers LLP audited FY2021 and FY2020 (restated).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -40.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 25% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Freshii Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 52
- Opened
- 1
- Last reporting year
- Closed
- 12
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 19.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 25.0%
- Net growth (3-yr)
- -40.2%
- Net unit change over 3 years
- 3-yr CAGR
- -40.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 47
- Terminated (3yr)
- 24
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 15.4%
- Franchisor-initiated terminations
- Ceased ops
- 23.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 43
- Loan volume
- $12.9M
- Median loan
- $334K
- 50th percentile
- Charge-off rate
- 32.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 67.6%
- 5-yr charge-off
- 14.3%
- Loans approved 2021+
- Active lenders
- 26
- Defaults
- 12
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 681
- 5.8 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 83% went to startups / new businesses, 17% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Freshii charge-off rate by loan vintage
Top lenders financing Freshii franchisees
Showing 3 of 26 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Freshii's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
A 32.4% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 32.4% — 102% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Freshii presents HIGH RISK due to contracting unit base (-17.5% YoY), going concern status, litigation history, zero financial transparency (no Item 19), and an unclear value proposition in a declining health-food category.
Litigation (Item 3)
Two arbitration matters: (1) 2512549 Ontario Inc. v. Lettuce Eatery Canada (affiliate) — breach of contract re territory, settled Feb 2022; (2) Kore Meals, LLC v. Freshii Development, LLC and Freshii, Inc. — breach of Development Agent Agreement, settled Feb 2023. No litigation against franchisees in 2022.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 15 / 100 verdict
- 01HIGHGoing Concern warning signal suggests franchisor may face viability issues; combined with unit decline, raises questions about long-term support and system sustainability
- 02HIGHTwo breach of contract litigations (Lettuce Eatery Canada affiliate and Kore Meals/Freshii Development) indicate internal conflicts, partner disputes, and potential franchisor-franchisee relationship friction
- 03MINORNo Item 19 disclosure (average unit volumes, revenues, or profitability) prevents validation of ROI claims; $172.5K-$641K investment range lacks transparency on realistic returns
- 04MED6% royalty on undisclosed gross sales creates cash flow risk; without knowing average unit economics, franchisees cannot assess true profitability or break-even timelines
- 05MEDCompetitive QSR segment (health/juice bars) has high saturation and declining consumer traffic post-2020; Freshii's unit decline may reflect broader market contraction, not just brand weakness
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Ontario, Canada |
| Jury trial waiver | No |
| Governing law | Ontario, Canada |
| Litigation count | 2 |
View Item 3 litigation summary
Two arbitration matters: (1) 2512549 Ontario Inc. v. Lettuce Eatery Canada (affiliate) — breach of contract re territory, settled Feb 2022; (2) Kore Meals, LLC v. Freshii Development, LLC and Freshii, Inc. — breach of Development Agent Agreement, settled Feb 2023. No litigation against franchisees in 2022.
Items 10, 11
Training & Operations
- Classroom training
- 19 hrs
- On-the-job training
- 100 hrs
- Training location
- Corporate Store, Toronto, Ontario, Canada; online/webcast
- Ongoing training
- Required
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle
Item 20 · call current owners
Franchisee Contacts
46 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Freshii · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Freshii franchise?
The total investment to open a Freshii franchise ranges from $173K – $641K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Freshii franchise owners earn?
Freshii does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Freshii FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Freshii FDD and qualifies whose outlets they describe.
What is Freshii's franchise failure rate?
Based on SBA 7(a) loan data, Freshii has a charge-off rate of 32.4% across 43 loans, meaning 32.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Freshii franchise locations are there?
As of their most recent FDD filing, Freshii has 52 total units in the United States, including 52 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Freshii a good franchise to buy?
FranchiseVerdict rates Freshii as a F-grade franchise with a verdict score of 15 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Freshii, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.